1. business and industrial
2. construction

Conference Call
1Q 2015 Results Presentation
April 30, 2015
Unsaved Document / 12/11/2012 / 14:08
Appendix
15
Agenda
1. Highlights and Recent Developments of 1Q 2015
2. Discussion of Financial Results as of 1Q 2015
3. Action Plan 2015
4. Final Remarkss
5. Q&A
1Q 2015 Results Presentation
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1. Highlights and Recent
Developments of 1Q 2015
Highlights
Macro Environment
•
•
•
•
Central Bank announced a GDP growth of 1.3% for first two months of 2015
MEF reduced its GDP growth estimate for 2015 to 4.2%, even though analysts
consensus is 2.8%
Private investment is expected to decline to -0.9% for 2015
Business confidence indicators are not improving
Backlog
•
•
•
Backlog plus Recurrent Businesses at US$ 4.0 billion
Backlog to revenues ratio equivalent to 1.55x
Backlog plus Recurrent Businesses to revenues equivalent to 1.78x
1Q 2015 Results Presentation
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Recent Developments
•
Lima Metro Bond Issuance for S/. 629 MM in February
•
Blocks III and IV: started operations in April 5th
•
14 new Private Initiatives presented in February
- 4 PIs from last year have been declared of relevance
•
Expansion of Line 1 of Lima Metro
- Negotiation for acquisition of more trains
•
The public bidding for the operation of the South Terminal for PetroPeru was declared void
•
Impact in results as a consequence of losses reported in Inmaculada Project
•
We have presented an offer for the construction of the Line 2 of Metro of Panama
- In a Consortium with Dragados and ICA
•
Talara Refinery:
- 4 proposals presented for the Refinery expansion’s related projects
- Estimated total amount of US$ 700 million
•
An improvement in Mivivienda program conditions has been approved, with the purpose to
contribute to the reactivation of the affordable housing market
1Q 2015 Results Presentation
5
Financial
Performance
2. Discussion
of Financial Results
Financial Performance
1Q 2015 Results Presentation
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Financial Results Overview

The Group achieved Revenues of S/. 1,703.0 MM
during 1Q2015, a 11.9% growth compared to
1Q2014
CONSOLIDATED QUARTERLY CUMULATIVE REVENUES (S/. MM)
8,000

Gross Profit amounted to S/. 173.5 MM in 1Q2015,
decreasing 23.5% compared to 1Q2014
7,009
7,000
6,000
4,899
5,000
4,000

EBITDA was S/.162.4 MM in 1Q2015, lower by
25.8% than the result obtained in 1Q2014
3,085
3,000
2,000
1,703
1,522
1,000

Net Income registered a decrease of 75.2%,
reaching S/. 17.9 MM in 1Q2015
REVENUES BY SEGMENT
1Q 2015 Results Presentation
EBITDA BY SEGMENT
0
1Q14
2Q14
3Q 14
4Q14
1Q15
NET INCOME BY SEGMENT
7
Backlog
Backlog by Segment
 Consolidated backlog of US$ 3,461.2 MM
and recurrent businesses of US$ 500.1 MM
Technical
Services
14%
 Backlog / Revenue ratio at 1.55x
Engineering &
Construction
63%
Real Estate
3%
 Backlog plus Recurrent Businesses /
Revenues ratio at 1.78x
Backlog by Sector
Transport
15%
4,000
1.83
396
1.78
446
443
1.71
3,000
580
1.72
500
1.58
2,000
3,988
3,815
3,865
3,461
3,596
1,000
1Q'14
Backlog
2Q'14
3Q'14
Recurrent Businesses
1Q 2015 Results Presentation
4Q'14
Backlog by Type of Client
1.90
1.85
1.80
1.75
1.70
1.65
1.60
1.55
1.50
1.45
1.40
Mining
Services
33%
Water and
Sewage
4%
Electricity
18%
5,000
Mining
Projects
10%
Real Estate
7%
Infrastructure
20%
Consolidated Backlog and Recurrent Businesses
(US$ MM)
Others
3%
Concessions
11%
Public
4%
Private
85%
Oil and Gas
10%
Backlog by Geography
Panamá Brasil y
3%
Guyana
1%
Colombia
11%
Chile
16%
1Q'15
Perú
69%
Backlog/Revenues Ratio
8
Backlog + Recurrent Businesses
(March 2014 – March 2015)
Backlog by End-Market
2%
Backlog by Country
2%
9%
2%
2%
3% 1%
11%
16%
14%
6%
7%
4%
4%
1%
9%
15%
16%
1%
28%
28%
19%
8%
16%
83%
73%
20%
Proy. Mineros
Op. Mineras
Petróleo y Gas
Electricidad
Agua y Desagüe
Inmobiliaria
Transporte
Otros
Public/Private
Perú
Colombia
Brasil y Guyana
Chile
Panamá
Bolivia+Ecuador
Construction/ Non- Construction
21%
36%
17%
3%
36%
4%
64%
64%
79%
Privado
76%
Público
No relacionados
Construcción
Construcción
Concesiones
1Q 2015 Results Presentation
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Backlog (March 2014 – March 2015)
Backlog by End-Market
Backlog by Country
1%
3%
10%
2%
15%
9%
15%
7%
4%
1%
3%
2%
17%
3% 1%
11%
14%
7%
4%
33%
31%
21%
2%
18%
10%
Proy. Mineros
Op. Mineras
Petróleo y Gas
Electricidad
Agua y Desagüe
Inmobiliaria
Transporte
Otros
Public/Private
83%
73%
Perú
Colombia
Brasil y Guyana
Chile
Panamá
Bolivia+Ecuador
Construction/ Non- Construction
11%
4%
27%
10%
30%
5%
70%
85%
Privado
Público
85%
1Q 2015 Results Presentation
73%
No relacionados
Construcción
Construcción
Concesiones
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Investments
Total CAPEX as of 1Q2015 amounted to S/. 97.2 million (US$
31.4 million), mainly oriented to:
1. E&C: US$ 8.7 million from which US$ 3.5 million
corresponds to the purchase and renewal of machinery
and equipment of GyM and Stracon GyM, whilst US$ 4.8
million corresponds to Vial y Vives-DSD
CAPEX by Business Segment
1Q2015
Technical
Services
14%
Real Estate
2%
Engineering &
Construction
27%
2. Infrastructure: US$ 18.3 million for investments in GMP
and the Norvial toll road.
3. Real Estate: US$ 0.7 million for Cuartel San Martin
Project and for the remodeling of our main office
4. Technical Services: US$ 4.6
investments in GMD and CAM
1Q 2015 Results Presentation
million
mainly
for
Infrastructure
57%
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Indebtedness
Maturity of Gross Debt
Consolidated Gross Debt
$800,000
3.00
2.51
$700,000
$695,729
$500,000
$400,000
$300,000
Less than
2.00
1 year
0.79
$331,429
$196,458
Other loans
0.77
1.00
$284,629
0.50
$0
2012
2013
Gross Debt
2014
Between 2
More than
and 2 years and 5 years
5 years
-
Total
1,098,852
84,622
34,528
106,454
115,847
86,140
15,611
324,051
Ferrovías Bond Issue
26,631
21,428
45,516
522,046
612,621
Total debt S/.
1,231,937
221,897
166,184
537,657
2,154,674
Total debt US$
397,784
71,649
53,660
173,606
695,729
0.00
2011
Between 1
Leasing
1.50
$584,935
1.06
$200,000
$100,000
2.50
1.91
$600,000
1,218,002
1Q2015
Gross Debt/ EBITDA
Debt by Segment
Debt by Currency
Type of Debt
Others
6%
Real Estate
8%
Infrastructure
43%
US Dollars
37%
Technical Services
6%
1Q 2015 Results Presentation
Working
Capital
42%
Project
Financing
48%
Engineering &
Construction
43%
Nuevos Soles
57%
Leasings
10%
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3. Action Plan 2015
1Q 2015 Results Presentation
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Action Plan 2015
•
During the first quarter of 2015 an action plan was created aiming to:
(i) Improve the profitability of the Business Areas and,
(ii) Strengthen the financial position of the Group
•
Projects with high operational risks have been identified within the four areas
•
We have identified 5 projects with improvement opportunities in Gross Profit
•
In order to reinforce the financial position of the Group, we are taking actions in two matters:
(i) Recovery of the working capital position, and
(ii) Optimization of CAPEX
•
We are looking to reduce the debt reported in March 2015, without affecting the level of Capex
•
Regarding the increase in the accounts receivables, we have initiated a specific action plan led by
general managements of each Company
•
We are optimizing our capital investments in assets reposition without affecting growth, or
operation cost
•
We are reducing our planned investments in the real estate area
1Q 2015 Results Presentation
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3. Final Remarks
1Q 2015 Results Presentation
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Unsaved Document / 12/11/2012 / 14:08
Appendix
Appendix
4. Q&A
15
Disclaimer
Forward-looking statements
This presentation contains forward-looking statements. Forward-looking statements convey our current expectations or forecasts of future events. These
statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ
materially from the forward-looking statements that we make. Forward-looking statements typically are identified by words or phrases such as “may,” “will,”
“expect,” “anticipate,” “aim,” “estimate,” “intend,” “project,” “plan,” “believe,” “potential,” “continue,” “is/are likely to,” or other similar expressions. Any or all of
our forward-looking statements in this presentation may turn out to be inaccurate.
Our actual results could differ materially from those contained in forward-looking statements due to a number of factors, including, among others: global
macroeconomic conditions, including commodity prices, and economic, political and social conditions in the markets in which we operate, particularly in Peru;
major changes in Peruvian government policies at the national, regional or municipal levels, including in connection with infrastructure concessions,
investments in infrastructure and affordable housing subsidies; social conflicts in Peru that disrupt infrastructure projects, particularly in the mining sector;
interest rate fluctuations, inflation and devaluation or appreciation of the nuevo sol in relation to the U.S. dollar (or other currencies in which we receive
revenue); our ability to continue to grow our operations, both in Peru and internationally; the level of capital investments and financings available for
infrastructure projects of the types that we perform, both in the private and public sectors; competition in our markets, both from local and international
companies; our ability to complete acquisitions on favorable terms or at all and to integrate acquired businesses and manage them effectively postacquisition; performance under contracts, where a failure to meet schedules, cost estimates or performance targets on a timely basis could result in reduced
profit margins or losses and impact our reputation; developments, some of which may be beyond our control, that affect our reputation in our markets,
including a deterioration in our safety record; industry-specific operational risks, such as operator errors, mechanical failures and other accidents; availability
and costs of energy, raw materials, equipment and labor; our ability to obtain financing on favorable terms; our ability to attract and retain qualified personnel;
our ability to enter into joint operations, and rules involved in operating under joint operation or similar arrangements; our exposure to potential liability claims
and contract disputes, including as a result of environmental damage alleged to have been caused by our operations; our and our clients’ compliance with
environmental, health and safety laws and regulations, and changes in government policies and regulations in the countries in which we operate; negotiations
of claims with our clients of cost and schedule variances and change orders on major projects; volatility in global prices of oil and gas; the cyclical nature of
some of our business segments; limitations on our ability to operate our concessions profitably, including changes in traffic patterns, and limitations on our
ability to obtain new concessions; our ability to accurately estimate the costs of our projects; changes in real estate market prices, customer demand,
preference and purchasing power, and financing availability and terms; our ability to obtain zoning and other license requirements for our real estate
development; changes in tax laws; natural disasters, severe weather or other events that may adversely impact our business; and certain other factors
disclosed in our registration statement on Form F-1 on file with the SEC.
The forward-looking statements in this presentation represent our expectations and forecasts as of the date of this presentation. Except as required by law,
we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise,
after the date of this presentation. In light of the risks and uncertainties described above, the future events and circumstances discussed in this presentation
might not occur and are not guarantees of future performance.
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Contacts:
Dennis Gray Febres
Investor Relations Officer
(511) 213 6583
[email protected]
Samantha Ratcliffe Leiva
Investor Relations Deputy Officer
(511) 213 6573
[email protected]
www.granaymontero.com.pe
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